Kodak Wins Partial Victory Against Apple in Patent Fight

By David McLaughlin -
Aug 1, 2012

Eastman Kodak Co. (EKDKQ) won a partial
victory against Apple Inc. over patents, defeating Apple’s
ownership claims to two of 10 patents that Kodak plans to sell
as part of its bankruptcy restructuring.

U.S. Bankruptcy Judge Allan Gropper in Manhattan ruled in
favor of Kodak on the patents, saying the iPhone maker waited
too long to assert its claims, according to a decision filed
today.

Kodak sued Apple in June over the assets, accusing Apple of
trying to disrupt the patent auction planned for next week.
Kodak asked Gropper to rule in its favor in a pretrial decision
known as summary judgment.

Kodak, based in Rochester, New York, filed for bankruptcy
in January and is selling more than 1,000 patents related to the
capture, manipulation and sharing of digital images. An auction
is scheduled for Aug. 8.

Gropper said Kodak’s ability to sell the assets would be
“cut off” if “unreasonably late claims” by Apple aren’t
barred. The judge rejected inventorship and state law ownership
claims by Apple to the two patents.

“If Apple’s claims proceed despite their unreasonably
delayed commencement, Kodak might have to go back to the drawing
board for ways to fund its case,” the judge wrote.

On the eight other patents, Gropper denied Kodak’s motion
for summary judgment. The judge said Kodak could renew the
request based on “a more complete record.”

Counterclaims Filed

Apple spokeswoman Kristin Huguet declined to comment about
the decision. Apple has filed counterclaims against Kodak,
saying Kodak is claiming Apple’s technology as its own.

The Cupertino, California-based company sought to transfer
the Kodak lawsuit out of bankruptcy court to U.S. district court
in Manhattan. U.S. District Judge George Daniels denied the
request at a hearing last week, saying Gropper should first rule
on summary judgment.

Kodak spokeswoman Stefanie Goodsell said the company was
pleased with the part of ruling in its favor. Gropper also ruled
against Flashpoint Technology Inc. with respect to the two
patents and three additional ones, according to the decision.

“With respect to several other patents to which Apple and
Flashpoint only recently asserted ownership claims, Kodak
believes that the facts will show that they are baseless, and
nothing but an attempt to interfere with the sale of our patent
portfolio,” Goodsell said in e-mailed statement.